What to establish before acting
Trace the meter’s volume through any correction and heat-content factors to the billed therms or MMBtu. Then map the supplier’s price components and the utility’s service obligations. A low benchmark adder may exclude services another offer includes. Firm or interruptible delivery and nomination responsibilities deserve an operational review, particularly for weather-sensitive loads. Electricity shopping rights do not establish gas-program eligibility. Start with the actual LDC and tariff rather than a statewide commodity advertisement.
Illustrative decision boundary
Suppose a hypothetical offer is $6/MMBtu and another is $0.60/therm. Those energy-unit prices are equivalent because one MMBtu equals ten therms, but their delivered economics still differ if transport or balancing is excluded from only one proposal.
Documents for a useful review
- Gas bills with units, conversion factors, and tariff class.
- Commodity, basis, transport, balancing, and LDC component definitions.
- Daily usage if relevant, service firmness, and operational contacts.
Questions & answers
Is Henry Hub my business gas rate?
It can be a reference input. Local basis, services, margins, delivery, and the chosen term create additional differences. A dated spot series is not a retail supply quote.
Can I compare dollars per Mcf with dollars per therm?
Convert using the applicable heat content and corrections first. Mcf is volume, while a therm measures heat energy. An assumed universal factor can distort the comparison.
What are swing costs?
They allocate costs when actual use differs from a defined forecast or nomination. Inspect the period, band, repriced quantity, index, and fees; a percentage alone does not describe settlement.
Does fixed commodity mean no winter exposure?
Not necessarily. Higher use, basis, transport, balancing, and operational restrictions can remain. Ask which exact components and quantities are protected under the written product.
Who handles gas delivery problems?
The local utility retains its network and emergency role. The supplier’s nomination or commercial duties are separate; use published utility procedures for emergencies and assigned contacts for operational restrictions.
Sources & scope
Primary references reviewed October 15, 2026. These sources support the stated concepts; actual tariffs, program rules and signed agreements govern the account. Decision examples and operational worksheets are original educational analysis.
- EIA: Natural gas customer choice programs
Gas marketing, distribution, and differences among choice programs. - EIA: Major factors affecting natural gas prices
Gas supply, demand, weather, storage, infrastructure, and exports. - EIA: Converting natural gas volume and energy prices
Heat-content-dependent conversion of Ccf, Mcf, therms, and MMBtu.